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Banks See CRM as a Key Business Driver
By
ChannelTimes Staff
International Desk, Sep 06, 2008 1401 hrs IST
With increased competition and the need to improve brand image, more than half of banks in Europe and the Middle East view customer-centric activities as a strategic differentiator and plan to invest in customer relationship management (CRM) technology.
A new report commissioned by SAP and conducted by the European Financial Management and Marketing Association (EFMA) revealed.
In the report titled "Achieving Customer-Centricity Throughout the Enterprise", results from an online survey of 108 banks in Europe and the Middle East were analyzed and four key findings have been highlighted:
- Banks recognize the strategic importance of CRM, but face many challenges including price competition, pressure to lower operating costs, fragmentation of customer segments and channel proliferation.
- Banks are moving towards a customer-centric approach, but it is a very slow process.
- Today, CRM at a bank is driven by individual departments and is primarily a front-end process, rather than extended across the enterprise.
- Banks still have limited information to measure their utilization of CRM.
Martha Bennett, research director, financial services technology, Datamonitor, said, "Providing a level of service that makes the client feel well-looked after and valued is as critical as the ability to offer the most optimal product at the right time. In order to achieve this, banks need to ensure that they have systems and processes in place that allow a view across distribution channels and avoid organizational silos."
The survey found that the majority of bank respondents said they have not yet been able to adequately address their fragmented customer segments and that they see CRM as a key strategic driver and require a more enterprise-wide approach to managing the entire customer experience.
The move to CRM is also evident in the number of respondents that state the investments they are making in this area in the near to long-term future. Nearly 50 percent of banks either have invested or are currently investing in CRM.
"In recent months, SAP has experienced the investment banks are making in standardized software for their core processes," said Julian Johnson, senior vice president, industry business solutions, Global Field Operations, SAP. "As the survey results support, a bank's customer-facing activities are now an integral part of its business and included in its criteria for selecting standardized software. The value this brings to a bank is seamless integration of its back-office functions, which will provide a true end-to-end view of the customer."
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